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This Trump trade is about to stall: Trader

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One of the hottest Trump trades is about to stall out, according to one trader.

Shares of automaker Tesla have rallied more than 30 percent since the election and nearly 19 percent year to date.

This as President Trump named Tesla CEO Elon Musk to his advisory team in December.

But as the stock inches closer to 52-week highs, one trader is betting the rally has come too far, too fast.

"Options activity [Tuesday] was very short dated," Dan Nathan said Tuesday on CNBC's "Fast Money." "It lends me to believe that its traders who have been long who are playing the momentum may be looking for some short-term protection."

The trade that caught Nathan's attention was a buyer of 5,000 Jan. 27 weekly 250-strike puts for $2.40. Since each options contract accounts for 100 shares of stock, that is a $1.2 million bet that Tesla will close below $247.60 by Friday. Despite missing some key near-term production targets, Nathan said that investors seem pretty confident in Tesla's future as the company continues to manufacture and sell domestically.

Tesla shares were trading at the $252.76 level during Wednesday's session.